Focused Differentiation Essay Example

Focused Differentiation Essay Example Focused Differentiation Essay Focused Differentiation Essay This type of strategy works on targeting narrow market niche where buyers needs and preferences are distinctively different. It offers attributes that appeal specifically to the niche member and more often they can be custom made. Marketing of the product under this kind of strategy is by communicating how product offering does the best hob of meeting niche buyers expectations. The key to sustain this kind of strategy is by staying committed serving the niche better that the competitors Non Stop Yachts is pursuing which type of generic strategy?What is attractive about the strategy and what are the risks for Non Stop Yachts? Among the above-mentioned generic competitive strategies, NSY is using broad differentiation strategy through sell supplies and parts for mega-yacht. The company offers a wide selection of products under different brand names. It is a one-stop shop through the Internet. They just give the information and specification of every product so that the customers have a wide range of options to choose from.With NonStopYacht.com, the company became a web based purchasing agent and can be accessed by customers in any part of the world through the use of Internet offering parts and supplies needed by the mega-yachts. This unique appealing attribute allows the company to increase unit sales. The competitive advantage of the company is their ability to serve their customers wherever they are because of the wide range of network of suppliers, the flexibility of the cost structure and the transparency of the billing. : Although this type of strategy of NSY was risky because not all that visit the site are sure customers.There is a great chance that they will just be used as a source of information for customers. There is also a possibility that those traditional purchasing agents will open their own e-commerce site. So apart from the regular customers that they have they can widen their market through the use of e-commerce. Evaluate Non Stop Yacht’s value chain to determine whether there is potential for low-cost leadership, competitively valuable differentiating attributes, or a best-cost provider advantage in relation to competition.The NSY Value Chain Value chains consist of the steps in adding value towards the final production of marketable goods and services. It maps the range map activities and business function required to bring a product or service to the market, from conception and design to the extraction of raw materials and then all the steps involved in developing the product or services into its final purchase form. The value chain runs from conception to consumption and incorporates all the aspects of production, distribution and exchange.According to (Porter 1980) it can be illustrated using the figure below Inbound logistics, operations, outbound logistics, marketing and sales and services are the primary activities in the company. Firm infrastructure, human resource management, technology development and procurement are the secondary activities. A new face for value chain can describe the activities inside the Non Stop Yacht e-commerce business. For a business like this that is dependent on the online community, the value chain can be described in the following manner:Awareness in business like this means generating traffic, driving visitors to visit and look at your site. Non Stop Yacht make efforts to make the public know that this site exists by securing high placement among the more popular search engines for key word search. However, this does not work well for the company because the growth in sales was small. Being a strict Internet based business does not work for NSY. So to make the customers know that their company exist they transfer to a public accessible area and put some computers that can be used by yacht crew.Non Sop Yacht new business model, from Purely Inter Based business to Hybrid brick and mortar enterprise, make the company more accessible to the yacht crew. Especially when they put a new office in Palma Spain and advertise the company’s site in three major publications that were frequently read and referenced by captains and crews: Professional Yachtsman’s Association News, The Yacht Report and Showboats. Attendance of Non Stop Team in major boat shows in Europe and United States helped the company. Interest.When captains and crews learned the existence of an online purchasing agent named Non Stop Yacht. They become interested in learning what are the new offerings of this company that make it different from the existing purchasing agencies. Non Stop Yacht provided a compelling value proposition to the crew of super yacht and mega-yacht , which includes: An up-to-date catalogue on CD Automatic accounting for the captain or yacht management company Password protected expenditure level for captains and engineersAutomatic receipt copies Link into maintenance scheduling software if used on the yacht Easy re-ordering of parts or group of parts Intelligent add-on sales with instant access to available options Product picture and parts diagram NO time zone issues This hassle free online purchasing offered by Non Stop create desire to the yacht owners, captains and crew to place an order for their yacht parts and supply requirements. Once the order is placed, NSY has to verify the authenticity of the order before delivering it to the customer.